Hey
@valen1828 I do get a bit fresh sometimes lol. You are right about the wild creatures there -- ours are not very exotic after you've seen what you have there.
Traders the
SPX closed at 4063.04 or
-2.14% and we are now well below 4100 -- and just above 50-day average that comes in about 4050. Below that we have a few major trendlines just below and above 4000. From what I can tell, every bounce was being sold today in a very mechanical way. It is not easy to trade. The overall move had big size, but it was a kind of slow. That could mean a few things but better not to speculate. One thing for sure is we don't have the gamma-positive crawl higher that we had over 4150. We do, however, have a VIX up to 27.59 or
+27.29% on the day and hedges building up that will need to be unwound at some point.
Market internals were moderately bearish at first but strongly bearish in the last hour of trade. Toward the end of the day, we had A-D lines
-2400 (like Tuesday) and NASD volume ratio at
-6.3:1 and NASD
-4.7:1. NYSE intraday tick distribution and cumulative tick were solidly negative. Those are not predictive for the next day, just an intraday reference. The ES futures volume point of control was created at the bottom of the profile so that is not bullish. The ES time-based point of control is more like 4070-4080. All the indices were down pretty hard so all we can do is watch to see how we go at that SPX 50-day average and also the
NDX 12900 area. Also, the
DJIA is fairly near its own 50 day. The
RUT small caps underperformed today. Not happy, Jan. Tomorrow we have more inflation data in the form of PPI/Core PPI as well as weekly claims. Asia and Europe are not going to like this and overnight futures are not as constrained as regular trading hours, so traders will probably be playing it safe.
